Understanding SaaS Metrics
causal.app
Understanding SaaS Metrics
1–10 of 15 posts
Re: Understanding SaaS Metrics
#2The term 'retention margin' doesn't seem like a commonly-used term (according to a quick Google search, anyway).
The definition seems identical to the commonly-used term 'contribution margin', i.e. revenue less variable costs. https://en.wikipedia.org/wiki/Contribution_margin
Re: Understanding SaaS Metrics
#3I think their definition of Net Revenue Retention (at least my understanding) is wrong as it includes growth from net-new MRR. This confounds retention with growth and isn't really helpful to answer what you really want to know: where is the revenue coming from? Retention IMU should be Past MRR plus upgrades less downgrades less churn (divided by past MRR). It explicitly does not include new customers.
Some of the other metrics are not the priority ones we look at either; your core measures really depend on if you looking for profitability or growth.
Re: Understanding SaaS Metrics
#4I think their definition of Net Revenue Retention (at least my understanding) is wrong as it includes growth from net-new MRR. This confounds retention with growth and isn't really helpful to answer what you really want to know: where is the revenue coming from? Retention IMU should be Past MRR plus upgrades less downgrades less churn (divided by past MRR). It explicitly does not include new customers. Some of the ot…
Public SaaS companies calculate dollar retention at least 15 different ways so there are many ways to do it. But I do agree with you.
Re: Understanding SaaS Metrics
#5The title should be Understanding a tiny part of SaaS metrics. Four indicators is better than none, but there's no Quick Ratio for example.
Re: Understanding SaaS Metrics
#6What are the differences between service costs and operating costs? [1]
I'm surprised not to see taxes and other external costs being taken into account in the Retention Margin. Are they pre-subtracted from gross sales as the input of RM ?
[1] edit: found the answer in the Learn More section: https://www.causal.app/saas-metrics/retention-margin
Re: Understanding SaaS Metrics
#7Maybe not the right question to be asking, but what tools does one use to track these types metrics in 2021 for a small 1-2 person company? Google sheets?
Re: Understanding SaaS Metrics
#8Maybe not the right question to be asking, but what tools does one use to track these types metrics in 2021 for a small 1-2 person company? Google sheets?
Have you seen what causal.app is doing? ;)
I am not sure whether it's enough, but they do have a free mode.
Re: Understanding SaaS Metrics
#9> Causal is optimised for Google Chrome and Safari. Please let us know if you encounter issues on other browsers.
Cool, cool cool cool.
Re: Understanding SaaS Metrics
#10> Causal is optimised for Google Chrome and Safari. Please let us know if you encounter issues on other browsers. Cool, cool cool cool.
Should be more like:
"We are only testing for 2 browsers can you do the testing and QA for us if you are using another browser? Thank you"